Yield on Cost Calculator
Our yield on cost calculator measures the current dividends paid by your investment against the price you initially paid for it.
To calculate yield on cost, enter your per-share purchase price and the annual dividend. You can use either the trailing twelve months’ dividend or an estimate of the next twelve months’ dividend.
For example, if you buy shares of Company XYZ for $10, and XYZ paid a $0.10 dividend per share each month during the last 12 months, enter “10” as the purchase price and “1.20” as the annual dividend amount (0.10 x 12 = 1.20). Or, if the dividend is forecast to increase to $0.20 per month for the next 12 months, enter “2.40” as the dividend amount to calculate the projected yield on cost.
If you’d like to compare yield on cost to the current yield, enter the current price as well (optional).
| Purchase Price Per Share: | ||
| Current Price (optional): | ||
| Annual Dividend ($): | ||
What it Means...
If you bought shares of stock at $10 per share and expect to receive $1.20 per year in dividends, your yield on cost is 12.0%. Yield on cost is highly relevant to individual investors, but it is often overlooked in favor of current dividend yield. A company that is able to consistently grow dividends can be a great investment for individual investors who see their yield on cost increase as the dividend payout grows.
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Cached on May 19, 2012, 11:00 am